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DASH Q4 Earnings Miss Estimates, Stock Rises on Upbeat Outlook

In This Article:

DoorDash DASH reported earnings of 33 cents per share in the fourth quarter of 2024, in contrast to the year-ago quarter’s loss of 39 cents. The figure missed the Zacks Consensus Estimate by 2.94%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues increased 24.8% year over year to $2.87 billion and surpassed the consensus mark by 1.34%. The upside was driven by higher Marketplace Gross Order Value (GOV) and growth in advertising revenues.

Following the results, DoorDash shares gained 5.75% in the after-hours trading to $204.20 on Feb. 11, likely driven by strong revenue growth, strong performance in total orders and Marketplace GOV.

DoorDash, Inc. Price, Consensus and EPS Surprise

 

DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. Price, Consensus and EPS Surprise

DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote

DASH’s Quarter in Details

In the fourth quarter, total orders increased 19% year over year to 685 million. The figure beat the Zacks Consensus Estimate by 1.50%.

Marketplace GOV increased 21% year over year to $21.3 billion. The figure beat the consensus estimate by 1.67%.

The adjusted gross profit was $1,472 million, up 31.8% from the year-ago period. The adjusted gross margin expanded 270 basis points (bps) to 51.2%.

The contribution margin was 33.7% compared with 29.9% in the year-ago quarter.

Adjusted sales and marketing expenses rose 17.8% year over year to $504 million.

Adjusted research and development expenses increased 25.8% year over year to $166 million.

Adjusted general and administrative expenses increased 21.6% from the year-ago quarter to $236 million.

Adjusted EBITDA was $566 million compared with the year-ago quarter’s $363 million. The adjusted EBITDA margin expanded 390 bps to 19.7%.

DASH’s Balance Sheet & Cash Flow

As of Dec. 31, 2024, DoorDash had $5.34 billion in cash and cash equivalents, and short-term marketable securities compared with $4.96 billion as of Sept. 30, 2024.

Cash flow from operations was $518 million in the fourth quarter compared with the previous quarter’s $531 million.

The free cash flow was $420 million, lower than the previous quarter’s $444 million.

DASH’s Q1 Guidance

For the first quarter of 2025, DoorDash anticipates Marketplace GOV of $22.6-$23 billion.

Adjusted EBITDA is expected to be $550-$600 million.

Zacks Rank & Other Stocks to Consider

DoorDash currently has a Zacks Rank #2 (Buy).

KT KT, BWX Technologies BWXT and Innodata INOD are some other top-ranked stocks in the broader sector.

KT flaunts a Zacks Rank #1 (Strong Buy) at present, and BWX Technologies and Innodata carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

KT shares have gained 9.2% year to date. KT is set to report its fourth-quarter 2024 results on Feb. 13.

BWX Technologies shares have returned 0.4% year to date. BWXT is set to post fourth-quarter 2024 results on Feb. 24.

Innodata shares have gained 7.5% year to date. INOD is set to report fourth-quarter fiscal 2024 results on Feb. 20.